Local Government Minister Hon. Simon Watts has praised Waikato councils for their leadership and collaboration as they explore a joint approach to managing water services across the region.

The Minister made his comments at a hui on Tuesday 7 May, attended by elected members from the seven councils considering the Waikato Water Done Well (WWDW) model - a proposed Council-Controlled Organisation (CCO) for delivering future water services.

Minister Watts acknowledged the value of local consultation, which is currently underway in each district, and confirmed that no final decisions will be made until all councils have completed this process.

Independent expert supports joint model

Councils have weighed up both financial and non-financial benefits of working together. The WWDW proposal has been thoroughly reviewed by council finance experts and independent consultants. At the hui, leading economist Brad Olsen, Chief Executive of Infometrics, presented the findings of his independent analysis.

Olsen confirmed the modelling is solid and based on sound assumptions. His key message: going it alone will cost ratepayers more in the long run.

“Modelling shows that a CCO approach, bringing together water services across much of the region, can deliver water services at a lower per-household cost than going it alone,” Olsen said.

• Over the past decade, everyday goods (as measured by the Consumer Price Index) increased by 32% — about 2.8% per year.
• In comparison, water and sewage costs rose by 52% — or 4.3% annually.
• These increases are expected to continue or grow, putting pressure on council budgets and household rates.

Olsen also explained that water infrastructure is typically used for 40–100 years, making it suitable for long-term funding through debt, rather than being paid for all at once by today’s ratepayers.

A joined-up approach, he said, also brings real benefits:

• Shared resources mean stronger negotiating power with contractors and suppliers.
• A larger combined organisation is more attractive to skilled workers.
• Planning and investment decisions are easier when working at scale.

Currently, the seven councils represent about 40% of Waikato’s population. On their own, each council covers just 2% to 12%. Operating at a larger scale gives councils more leverage and that means better value, better service, and more resilience.

In summary

Olsen concluded the WWDW model:

1. Meets government requirements
2. Encourages better collaboration
3. Strengthens negotiating power
4. Spreads costs over time and users
5. Enables water infrastructure to be debt financed
6. And most importantly, it saves money

Join the conversation

Consultation is open on Matamata-Piako’s preferred option - the Waikato Water Done Well CCO, with submissions closing on 25 May. The consultation document and submission form can be found at mpdc.nz/letstalk, and hard copies can be picked up from Libraries and council offices.

There are opportunities to find out more at information sessions where people can talk with elected members and staff. Information sessions are being held:

• Wednesday 14 May, 5.15-6.15pm at Matamata Civic Centre
• Thursday 15 May, 1.30-2.30pm at the Morrinsville Rotary Hall
• Monday 19 May, 10-11am at the Silver Fern Farms Events Centre, Te Aroha

Webinars were held on 8 May and the lunchtime recording can be viewed here.

The final decision on a water services delivery model will be made by Council at the end of June.